Gold markets initially dipped during the trading session on Thursday, reaching down towards the $1262 level, but bounced enough to reach towards the $1267 level above. This is a market that I think continues to be very bullish, as more of a “risk on” attitude continues to be a feature in the marketplace. Gold has been forming a nice uptrend in channel on the hourly chart, and I think that is a good sign going forward. I believe that the $1250 level underneath should be massively supportive, and essentially where a lot of value hunters will return back into the marketplace. If we were to break down below there, the market could go much lower, to at least the $1225 level.
The markets continue to be volatile as gold typically is, but there is obviously a nice uptrend that we are trying to extend, but with the holiday volatility and lack of volume, it might be a bit difficult to trade this market, at least in full size. Adding slowly could be a nice way to take advantage of this market, but then again, we could do a positive position by holding onto physical gold as well. I have been buying physical gold recently, in a longer-term trade. As far as shorter-term trades are concerned, leveraged positions are fine, but I think we are clearly starting to see an upward bias, so I would be a “buy only” trader at this point in time if I was to be in the CFD or futures markets.
Price of Gold Video 22.12.17
This article was originally posted on FX Empire